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A retail outlet has its own production facility for producing denim cloth. The ordering cost ($150) is the cost of setting up the production process to make the denim cloth. The carrying cost is $0.75 per yard and the demand is 10,000 yards per year. The production facility operates the same days as the retail store is open (i.e. 311 days) and produces 150 yards of the denim cloth per day. Determine:
a) The optimal order size
b) The total inventory cost
c) The length of time to receive an order
d) The number of orders per year
e) The maximum inventory level
The Grand Valley Company, run by the J. Motwani family, produces two products: bed mattresses and box springs. A prior contract requires that the firm produce at least 30 mattresse
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what are the objectives that an operation should seek in order to ensure a good layout?
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